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Musk World
Not a single day goes by when Elon Musk isn't in the news for something. More often than not, the news isn't good. Or at least that's the way it feels.
The same's been true of Donald Trump at various intervals dating back to 2015. These days, the two men are almost synonymous, so much so that Trump felt compelled recently to insist on a distinction: Musk, he explained, during remarks for Turning Point's "AmericaFest" event in Phoenix late last month, is a "smart person we can rely on," whereas
“Tesla shares blew up” – I see what you did there.
The dynamics between Musk, Trump, and China will be interesting. If Trump follows through on his tariff threats against China, seems like Tesla could be a target for reprisal from China. I’d also like to think a not insignificant number of potential Tesla buyers would be turned off by Musk’s political involvement, but that doesn’t seem to be showing up in any meaningful way in the delivery numbers so far.
So far …
Elon is a genius so when he went all MAGA I surmised that he realized that he had finished milking the “woke” crowd who now might be tempted to opt for the more eye-catching Volve. BMW and Rivian offerings. So he was pivoting to attract the mass of red state MagaLytes who would never countenance buying an EV out of anti-woke peevishness. State-by-state EV sales data confirmed
supposition, which was “surprisingly” in line with Covid vaccine take-up stats.
But, our Dear Leader is suggesting that Elon’s motivation is no longer focused on merely boosting Tesla sales.
Back to dayjob’s question – an online social media group I follow related to our mid-sized city normally fields queries like “who do you recommend for reliable & honest car repairs” or “what restaurants offer the best setting for a small gathering at a reasonable cost” kind of questions.
Recently someone asked Tesla owners for their experience with the brand since she was thinking of buying one. The owner responses were 75% favorable, with the naysayers rather virulent about their experiences.
The answers that surprised me came from people who had opted to avoid buying a Tesla. Some on price, more folks based on Musk. A common recommendation was not the elite models I referenced but the Hyundai IONIQ. So maybe … ??
At this point, it is hard for me to even consider Tesla as an actual financial investment. If I were a gambler, maybe- but even then; I’d be counting on there being a lot of gamblers still gambling in the US stock market at the future point in time when I decide to sell (too risky of an assumption for me).
Besides, I already own too much via SPY- of which 1.87% is Tesla. Also, I don’t need another investment with significant “key man gets hit by a bus” risk.
If Tesla, at a 119PE, is justifiably twice as expensive as Nvidia, at a 57 PE, because of some yet unproven/unannounced technologies, then Elon better get his work with DOGE wrapped up pretty quickly so he can get back to his regular job at Tesla- the one that is supposed to be paying him $50B.
Last fall, at an international auto show, I saw the Chinese lineup of electric cars and Tesla didn’t look very good, in comparison.
Keep in mind, however, that I love a car that rumbles with a V8 engine. 🙂